AMD Is Not up for Sale!
Bohs Hansen / 2 years ago
There are currently rumours going around the China’s BLX IC Design Corp is interested in buying up AMD, causing AMD’s shares to surged more than 5 percent on Monday due to this. We all know that it isn’t going as good for AMD as it could, but is it really that bad?
Not according to Bernstein analyst Stacy A. Rasgon that seemed sceptical of a possible buyout offer and would be “surprised that Lisa Su’s first task as CEO would be to sell the company.” On top of that comes that the x86 cross-license between Intel and AMD, which wouldn’t transfer along with control of the company and would have to be renegotiated.
MKM Partners analyst Ian Ing noted that BLX and the Chinese government are seeking to grow intellectual property holdings and that acquiring AMD could make sense at the right valuation. But because of the debt, the $3B+ valued enterprise purchase wouldn’t make sense. He was “not sure AMD’s product capabilities are worthwhile at the moment: their CPUs and graphics face intense competition and lack stability as a highly regarded management team attempts a turnaround.”
So let’s just put this rumour to rest right away. AMD isn’t going anywhere anytime soon and they might still have an ace or two to reveal.